Annual report [Section 13 and 15(d), not S-K Item 405]

Revenue

v3.25.4
Revenue
 12 Months Ended
Dec. 28, 2025
Revenue from Contract with Customer [Abstract]  
Revenue
3. Revenue
Disaggregation of Revenue
In the following table, revenue is disaggregated by type of good or service (in thousands):
Year Ended
December 28, 2025 December 29, 2024 December 31, 2023
Restaurant revenue $ 1,189,780  $ 1,224,254  $ 1,274,294 
Franchise revenue 14,076  14,941  15,867 
Gift card breakage 5,243  7,930  9,874 
Other revenue 1,126  1,435  3,011 
Total revenues $ 1,210,225  $ 1,248,560  $ 1,303,046 
Contract Liabilities
Components of unearned revenue in the Consolidated Balance Sheets are as follows (in thousands):
December 28, 2025 December 29, 2024
Unearned gift card revenue $ 24,096  $ 24,333 
Unearned Royalty revenue
 3,191  2,750 
Unearned revenue $ 27,287  $ 27,083 
Revenue recognized in the Consolidated Statements of Operations and Comprehensive Income (Loss) for the redemption and breakage of gift cards that were included in the liability balance at the beginning of the fiscal year was as follows (in thousands):
Year Ended
December 28, 2025 December 29, 2024 December 31, 2023
Gift card revenue $ 13,070  $ 16,782  $ 19,224 
We recognize revenue from our customer loyalty program, Red Robin Royalty ("Royalty"), within restaurant revenue in the Consolidated Statements of Operations and Comprehensive Income (Loss) when a customer redeems an earned reward. Unearned revenue associated with our Royalty program is included in unearned revenue in our Consolidated Balance Sheets.

Changes in our unearned revenue balance related to our Royalty program (in thousands):
Year Ended
December 28, 2025 December 29, 2024
Unearned Royalty revenue, beginning balance
 $ 2,750  $ 7,509 
Revenue deferred 5,352  4,817 
Revenue recognized(1)
(4,911) (9,576)
Unearned Royalty revenue, ending balance $ 3,191  $ 2,750 
(1) Restaurant revenue recognized during the fifty-two weeks ended December 29, 2024 included a credit of approximately $6.4 million related to the transition to the new Royalty program in the second quarter of fiscal 2024, primarily due to the cancellation of unused points that were earned more than 365 days prior to the launch of the new program.